Getting a Pre-Approval
A
long time ago I learned the value of doing things in sequence. Not just in sequence,
but the proper sequence. All of us have learned this lesson, some the hard way.
Here is an example of poor “sequencing”: Walk outside, lock up your house,
then look for your keys. You get the idea. There is a proper sequence for all things,
including buying a home.
Getting yourself “pre-approved” for a home loan before you start shopping is considered
proper sequencing as you prepare to buy a house. There are many reasons why getting pre-
approved is the right thing to do:
Budget:
By Jayson Stebbins
Mortgage Professional
When you go through the process of home buying it is critical that budget be the driver
for that new house payment. How much do you want to spend? What can you afford?
Can you make that payment and still get a good night’s sleep?
Target Home Price:
Once you know your budget then you can begin to shop in the right price range. Your
real estate agent will be able to provide you with targeted listings for your budget and you
won’t spend time falling in love with a house that you cannot afford.
Loan Structure:
By working through the pre-approval process, you and your lender can determine the best
loan based on your down payment, credit score, budget, and short/long-term goals.
Planning:
Jayson Stebbins is a 21-year
veteran of the Mortgage Banking
industry and an Accredited
Mortgage Professional through the
Mortgage Bankers Association.
He grew up in Morgan Hill and
currently lives in Gilroy. He is
the local Branch Manager of
Guild Mortgage, a 53-year-old
Mortgage Banking firm. His office
is in Morgan Hill and serves all
of Santa Clara, San Benito, and
Monterey counties. You can reach
Jayson and his Team at 408-782-
8800 or at www.stebbinsmort-
gageteam.com .
Pre-approval also allows you to identify any problems or issues up front with credit or
income. That will allow you and your lender to make a plan to get you eligible to buy
a home as quickly as possible.
It is worth noting, as well, the difference between a true pre-approval and a
“pre-qualification.” A true pre-approval will come with a letter from your Lender that
shows your eligibility to buy to a certain price point, and your real estate agent will use
that to make home purchase offers on your behalf. Usually, a pre-qualification will only
be a rough outline of numbers and will not include credit checks, income
evaluation and the important pre-underwriting that will truly determine
your purchase power. Make sure your Lender knows you want to be
pre-approved so you can have confidence in your final answer.
Here is an example of good “sequencing”: Contact your
lender, get pre-approved for the right loan, work with your real
estate agent to find the right house, then close that loan and
get the keys to your new home.
And please make sure you have the keys with you
before you lock up your house.
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G M H T O D A Y M A G A Z I N E
MAY / JUNE 2015
gmhtoday.com